Bugs Bernanke: Eh…What’s Up, Doc?

“Eh…what’s up, Doc?” was perhaps one of the most famous cartoon lines in history. In most instances while boldly munching his carrot, Bugs Bunny delivered those memorable words.

Sometimes, he asked the infamous question when he was in danger. Other times, Bugs conveyed the familiar quote when he was victorious, and occasionally he would pronounce the well-known query when there was a lull in the action.

The animators always seemed to know the perfect moment for Bugs Bunny to ask his notorious question.

That’s why it’s so darn funny that the Federal Reserve was featured in a recent Wall Street Journal article by Jon Hilsenrath that paraphrases the legendary Bugs Bunny line. For several years, Hilsenrath has been the conduit by which Ben Bernanke telegraphs his intentions, issues his proclamations, and vents his frustrations.

Most recently, the Fed Chairman wondered how the economy can be regressing when a large number of people have been added to the payrolls, the unemployment rate has fallen from 10% to 8.3%, and the stock market is approaching all-time highs creating that ever wonderful “wealth effect.”

However, in 2011, the economy expanded a paltry 1.7%.

According to recent estimates, the growth rate for 2012 is also expected to be less then 2%.

Yet, the Fed with its ZIRP (Zero Interest Rate Policy) and freewheeling money creation believes that it has stemmed the tide of unemployment.